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© Anheuser-Busch InBev. All rights reserved.
Best Beer Company Bringing People Together for a Better World
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Ricardo Rolim, Global Vice President, Sustainability Bert Share, Senior Director, Beer & Better World June 2015
© Anheuser-Busch InBev. All rights reserved. 2
* Ticker
Euronext: ABI
NYSE: BUD
Leading global brewer
Top-five consumer products company
EBITDA of 18.5 billion USD in 2014
Revenue of 47.1 billion USD in 2014
Global HQ: Leuven, Belgium
Operations in 25 countries
Sales in 100+ countries
155,000 employees worldwide
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AB InBev at a glance
© Anheuser-Busch InBev. All rights reserved.
Operations across six geographical Zones
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http://www.ab-inbev.com/content/dam/universaltemplate/abinbev/pdf/investors/annual-and-hy-reports/2014/AB_InBev_AR14_EN_full.pdf
© Anheuser-Busch InBev. All rights reserved.
top 5
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Source: company filings, AB InBev. *Unilever is # of billion EUR brands; Nestle is # of CHF Brands
AB-INBEV
P&G
COKE
UNILEVER
PEPSI
NESTLE
0
5
10
15
20
25
30
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$10 $12 $14 $16 $18 $20 Annual EBITDA ($ billions)
# o
f B
illio
n D
olla
r* B
ran
ds
© Anheuser-Busch InBev. All rights reserved.
OF THE BrandZ® TOP 10 MOST VALUABLE BEER BRANDS
1.
2.
4.
5.
6.
8.
10.
1.9M HOURS OF EMPLOYEE TRAINING
20,000
PROVIDE SUPPORT TO MORE THAN
BARLEY
GROWERS WORLDWIDE
Over $67 MILLION
IN SAVINGS FROM WATER &
ENERGY REDUCTIONS SINCE 2012
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ZERO PRODUCT SAFETY RECALLS IN 2014
20 YOUNG EMPLOYEES WERE SENT TO PARTICIPATE AT ONE YOUNG
WORLD IN OCTOBER 2014 IN DUBLIN.
REVIEWED OVER ON-SITE AUDITS OF
HIGH RISK SUPPLIERS AND SECOND TIER
MERCHANDIZING SUPPLIERS
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100 MILLION+ SOCIAL MEDIA
FANS
OVER 225,000 HOURS OF COMMUNITY
SERVICE IN 2014
16 $1B BRANDS
COMPLIANCE HELPLINE AVAILABLE IN
15 LANGUAGES TO REPORT ETHICS
AND HUMAN RIGHTS VIOLATIONS
APPLICANTS TO THE GLOBAL MANAGEMENT
TRAINEE PROGRAM
94,000
AB InBev by the numbers
220
© Anheuser-Busch InBev. All rights reserved. 6
Budweiser and Corona named in Interbrand’s list of 100 Best Global Brands
Labatt named one of Canada’s Top 100 Employers for the
second year in a row in 2014.
AB InBev ranked #2 in the World’s Most Admired
Companies list within the Beverages Industry
AB InBev was recognized as No. 2 of the Top 10
Corporate Leaders in Water Stewardship by Triple
Pundit.
The China Youth Development Foundation
recognized AB InBev with its “Outstanding Contribution Award”
at the 25th Anniversary
Celebration of Project Hope in Beijing.
A survey conducted by MERCO and La Nación ranked Cervecería y Maltería Quilmes sixth on the
list of Top Employers in Argentina.
Ukraine’s Chernigivske brand
was named the World’s First Eco Beer by a European Union
agency.
The Quilmes Brewery was recognized by the National
Environment Authority for its environmental achievements.
Global Entrepreneur awarded AB InBev 2013-2014 “Best Performers 50 China” for its strength and
achievements in the field of corporate social
responsibility
Beverage World recognized Anheuser Busch’s Houston fleet
as “Fleet of the Year.” The Houston Brewery replaced its
66-tractor diesel fleet with CNG vehicles.
Ranked 1st in beverages and tobacco industry and
1st in corporate governance category by
the Melhores da Dinheiro magazine in Brazil
Featured in Water Management category by Exame Sustainability Guide in Brazil
© Anheuser-Busch InBev. All rights reserved. 7
Environmental Sustainability
©Anheuser-Busch InBev
• Global environmental goals:
• Owned by the functions who can impact them the most
• Cascaded across company
• Linked to variable compensation
• Practical, simple, informal, quick actions
• Learn, improve, scale through sharing best practices
• Never satisfied - continually thinking about what’s next
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© Anheuser-Busch InBev. All rights reserved.
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Global goals achievement Our colleagues across more than 20 countries helped achieve our 3 year environmental goals
Water reduction
18.6%
Energy reduction
12%
Recycling
99.2%
Carbon emmissions
15.7%
Through our efforts, we’re creating value for all our stakeholders
DOWN UP DOWN DOWN
All results relative to 2009 baseline
© Anheuser-Busch InBev. All rights reserved. 10
New Environmental Goals
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http://www.ab-inbev.com/content/dam/universaltemplate/abinbev/pdf/sr/global-citizenship-report/AB_InBev_GCR_2014.pdf
© Anheuser-Busch InBev. All rights reserved.
Stuart Orr Head of Water Stewardship World Wildlife Fund for Nature (WWF International)
Hal Hamilton Founder and Co-Director Sustainable Food Lab
Howard Neibling Associate Professor Dept of Biological and Agricultural Engineering University of Idaho
Other Global Engagement
Engaging external advisors on strategy and execution of barley and watershed goals to invest in long-term partnerships and obtain fast and reliable insights.
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© Anheuser-Busch InBev. All rights reserved.
Our water strategy not only includes internal action and efficiency but also engages in collective action and local governance.
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Water awareness
Knowledge of impact
Internal action
Collective Action
Influence governance
Companies aware of the global water issues
Companies understand their footprint and identify water quantity/quality issues relevant to the company
Companies work to save water internally and establish water efficiency measures
Companies, sector initiatives, government authorities and NGOs engaged to work together in water stewardship
Companies working with public authorities, local businesses, farm leaders, research institutions and other players to engage in the public policy arena
© Anheuser-Busch InBev. All rights reserved. 13
In-plant water conservation
Agricultural Development
Community Watershed Protection
Rigorous water risk assessment
Focus on collective action and stakeholder engagement
© Anheuser-Busch InBev. All rights reserved.
Capturing a conversation between our agronomists and barley growers to improve barley quality and farm level performance
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Field Level – Production Practices to KPIs
• Review of individual grower fields with barley
• Specific varieties, rotations and crop performance
• Capture inputs and management practices
Farm Level – Better World Indicators
• Assess concern regarding water and soil risks
• Ability to address and manage weather risk
• Economic contribution of producing barley for ABI
© Anheuser-Busch InBev. All rights reserved. 15
Insights to Action – Best Practices & Technology
AgriMet Partnering with government
and academia to improve irrigation management in Idaho
and Montana Country: United States Local Stakeholders: Caribou Soil District, USDA, University of Idaho 2014 Targets: • 6 climate stations • 3 AgriMet field trials • 25 participating growers • 1000 educated about AgriMet
Irrigation Optimization Improving irrigation practices in the Gansu province that reduce water use and improve drought
management
Country: China Local Stakeholders: GAAS, State Owned Huangyanghe Farm 2014 Targets: • Irrigation optimization trial • Ganpi drought tolerance report • Ganpi malt quality report • 30 grower demonstration
Conservation Agriculture Enhancing soil health and
moisture retention through conservation agriculture in the
Bajio and Altiplano
Country: Mexico Local Stakeholders: MasAgro, FIRA, SAGARPA 2014 Targets: • 900 demonstration participants • 2000 committed ha for 2015 • 4 qualified trials in Bajio
Handheld NDVI Sensors Improving nitrogen use
efficiency to increase yields, grow profits and enhance water
quality in the Bajio
Country: Mexico Local Stakeholders: MasAgro, FIRA, SAGARPA 2014 Targets: • Summer promotion program • 14 demonstrations • Implementation of grower
rewards system for giveaways
Becoming an industry leader in agricultural water stewardship
© Anheuser-Busch InBev. All rights reserved. 16
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Collaborating with governments, communities and NGOs in Argentina, Bolivia, Brazil, China, Mexico, Peru and the United States to collectively engage in watershed protection measures
© Anheuser-Busch InBev. All rights reserved. dsfsdfsdfsdf 17
JAGUARIÚNA, BRAZIL Building on the CYAN project, a broad-based initiative we launched in 2010 to create awareness and promote social mobilization for water conservation, we are partnering with the Jaguariúna Municipality, The Nature Conservancy (TNC) and The Brazilian Agricultural Research Corporation to recover and conserve the water basin that supplies water to the greater São Paulo.
COCHABAMBA, BOLIVIA In partnership with the local government, working with two local communities, competing for water access and administrative rights over Taquiña River, to improve the local water supply, donate treated water from our operations for agricultural purposes, and repair local infrastructure – all while continuing to reduce brewery water consumption.
Watershed Protection Delivering unique value to growers to improve barley quality and farm level performance
© Anheuser-Busch InBev. All rights reserved.
Responsibility and Corporate Governance
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© Anheuser-Busch InBev. All rights reserved. 19
In 2014, we formed a Global Advisory Council comprised of acknowledged and accomplished public and private sector leaders who provide insight and guidance to our management.
Visionary experts in policy, health and corporate responsibility, the advisors focus on: • The role of business in society. • Public/private partnerships that foster well-being and leverage our expertise and reach. • Shared Value initiatives in responsible drinking, environment, and community-building. • Emerging health and societal trends.
Jean Chrétien Former Prime
Minister, Canada
Cherie Blair Founder, Cherie Blair Foundation
for Women
Gilberto Dimenstein Brazilian Joumalist, Folha de S. Paulo
and CBN Radio
David Jones Co-founder, One
Young World
Derek Yach Executive Director,
Vitality Institute
Nancy Snyderman Former Chief
Medical Editor, NBC News
© Anheuser-Busch InBev. All rights reserved. 20
Responsible Drinking Goals 2011-2014
http://www.ab-inbev.com/content/dam/universaltemplate/abinbev/pdf/sr/global-citizenship-report/AB_InBev_GCR_2014.pdf
© Anheuser-Busch InBev. All rights reserved. 21
Our China team delivered nearly 80,000 server and seller trainings in September 2014, as part of Global Be(er) Responsible Day celebrations.
BOB designated driver campaign begun in Belgium now
IN PRACTICE IN 16 EU MARKETS
MORE THAN 35,000 COLLEAGUES Participated in the Global Be(er) Responsible Day
More than 15,000 servers were trained in September 2014 in the US in partnership with the National Restaurant Association.
Responsible Drinking By the Numbers
In recognition of Global Be(er) Responsible Day, our Mexico team recruited over 16,200 Modelo volunteers with more than 15,700 additional industry volunteers to combat underage drinking and sales
of alcohol to minors.
Family Talk About Drinking Program
AVAILABLE IN ALL TOP 10 MARKETS
Guinness World Records Achievement for “Most Pledges
Received for a Campaign” with more than 747,000 pledges between Sept 1 – Dec 31, 2014
© Anheuser-Busch InBev. All rights reserved. 22
GBRD Pictures and Update 37,931 employees participated in our fifth annual Global Be(er) Responsible Day on September 19, 2014 promoting responsible drinking and sales..
Korea
China
Europe Brazil
Argentina
Mexico
USA
© Anheuser-Busch InBev. All rights reserved.
…with a disproportionate impact on certain groups Road traffic injuries are already the 8th leading
cause of death worldwide, and on the rise…
7%
5%
4%
4%
3%
2%
2%
Diarrheal diseases
COPD
Respiratory infections
Stroke 10%
Heart disease
12%
2004
Low birth weight
Road traffic injuries
2%
Throat and lung cancer
Tuberculosis
HIV/AIDS
12%
10%
7%
5%
4%
3%
2%
2%
2% HIV/AIDS
Stomach cancer
Hypertensive heart disease
2030 (Projected)
Throat and lung cancer
Road traffic injuries
4%
Respiratory infections
COPD
Stroke
Heart disease
Diabetes
Global Causes of Morbidity
Note: Road traffic injuries have already risen from 9th to 8th since 2004
• Globally, traffic accidents are the #1 cause of death among people aged 10-29
• 3 out of 4 victims are men
• Motorcyclists, pedestrians and bicyclists make up 50% of road fatalities globally
• Every year, 80,000 children aged 5-14 are killed in road accidents on their way to school
• 90% of fatalities occur in low- and middle-income countries despite those being the least motorized regions in the world
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Mission & Vision
TOGETHER FOR SAFER ROADS (TSR) is an innovative coalition that brings together global private sector companies to focus on improving road safety and reducing deaths and injuries by road traffic collisions. It was founded by Anheuser-Busch InBev, AIG, AT&T, and its members are Chevron, Ericsson, Facebook, IBM, iHeartMedia, PepsiCo, Walmart and Ryder. TSR uses the knowledge, data and technology, and global networks of members to promote:
Safer roads, vehicles and systems
Safer road users
Advocacy and thought leadership
TSR was formally launched at the United Nations on November 13th, 2014 to an audience including UN Permanent Representatives, key stakeholders such as the UN Global Compact and World Health Organization, and the global media. We encourage you to view a recap of the event online here.
To learn more about TSR please visit our website, www.togetherforsaferroads.org and our social media channels on Facebook, Twitter, and YouTube.
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Mission & Vision
Our vision is a world where roads are safe for all people. Working together, we aim to bend the curve on road traffic accidents so they are
no longer one of the leading causes of death and injuries worldwide.
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© Anheuser-Busch InBev. All rights reserved. 26
COMMITMENT Global Human
Rights Policy
Code of Business Conduct
Supplier Principles Responsible Sourcing
Policy
Signatory to UN Global Compact
FOCUS AREAS
Governance: Cross-Functional Human Rights Working Group (Legal, People, Corp. Affairs, Comms, Supply, Procurement, Sales, ABII)
Child Labor Forced Labor and
Freedom of Movement
Discrimination and Harassment
Working Hours and Compensation, Adequate
Standard of Living
Workplace Safety and Health
Freedom of Association
Security
Partnerships: Business for Social Responsibility (BSR), AIM-PROGRESS, SEDEX
Implementation: 15,000 employees to be trained in 2014, Human Rights helpline category created within existing compliance helpline.
INDUSTRY COOPERATION
Policy Development
Impact Assessment
Implementation and Grievance Mechanisms
Best Practice Sharing
Human Rights
© Anheuser-Busch InBev. All rights reserved. 27
* Suppliers were chosen based on risk criteria that included country of origin, spend, relationship to brands and existing country corruption ratings.
Sought Guidance from the non-profit research and consulting organization, BSR, and reviewed international standards such as SA8000:2008 (a standard developed by Social Accountability International).
Member of
SEDEX and
Aim-
Progress,
AB InBev
implemente
d a Global
Responsible
Sourcing
Policy in
2009
2013: we enhanced our global responsible sourcing program by re-communicating our policy to our supply chain and implementing self-assessments with 1,250 suppliers for social compliance risk.
2012: We conducted pilot risk assessments of 35 suppliers in China.
2014: Reviewed over 220 onsite audits of suppliers and second tier merchandizing suppliers
Incorporated Grupo Modelo operations into the responsible sourcing program.
2015: Working to incorporate our responsible sourcing program into a larger supplier qualification program, taking into account legal, financial and social compliance.
2013: All high priority non-compliances where closed
2014: Continue to close other non-compliances
Responsible Sourcing Working to limit environmental impact, improve social governance and foster economic stability
© Anheuser-Busch InBev. All rights reserved. 28
SCOPE Anti-Bribery Antitrust Code of Business Conduct Ethics Conflicts of Interest Data Privacy
FEATURES Compliance function reports
directly to CLO and dotted to the Board Audit Committee
Global team: ~35 FTEs Back office in Brazil
COMPLIANCE COMMITTEES Global + 6 Zone Committees Minimum Quarterly meetings Composition
Global: CLO, CFO, People VP, Internal Audit VP, Internal Control VP, Head of Compliance.
Zones: Zone GC, Zone CFO, Zone Audit, Zone People VP.
Minimum agenda: follow up and decision on ongoing cases and reports, supervise the compliance program, decide on specific requests.
SYSTEMS HELPLINE: where anybody can anonymously report activities in violation of the Code of Conduct COMPLIANCE CHANNEL: the system to register all requests for gifts, hospitality and donations approvals DUE DILIGENCE TOOL: to register all Touch Point Vendors and their DDs
© Anheuser-Busch InBev. All rights reserved. 29
155,000 employees
Operations in 25 countries
3.8 billion USD in wages and salaries
4.3 billion USD in capital expenditures
16 billion USD paid in excise and income taxes
More than 61,000 employees volunteered in their communities
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Our Community
© Anheuser-Busch InBev. All rights reserved. 30
Russia & Ukraine “Spring cleaning” in the streets of our brewery cities Brasil “Nosso Bar” Responsible Youth 21 communities NGOs
United States Disaster Relief Habitat for Humanity Canada Disaster Relief
Belgium Disaster Relief Uruguay & Paraguay Un Techo para mi Pais (A Roof for My Country)
Mexico Escuela Modelo training teachers in Mexico Argentina Futuro Posible
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Making a Difference
China Hope School
© Anheuser-Busch InBev. All rights reserved.
Brand Engagement
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© Anheuser-Busch InBev. All rights reserved. 32
Weston-super-Mare, UK, July
Ibiza, Spain, May Ibiza, Spain, August
Cancun, Mexico, July Acapulco, Mexico Aug
Toronto, Canada August
Marche, Italy, September
Corona has partnered with FEE/Blue Flag International to carry out beach cleanup and adoption events in key markets in advance of SunSets music festivals: • Volunteers to receive vouchers to the music festival in recognition of their efforts • Plan is to expand partnership into new markets next year. • Italy will be a new 2014 addition.
© Anheuser-Busch InBev. All rights reserved. 33
780 million people lack access to clean drinking water. Women are at the heart of water poverty. BUY A LADY A DRINK is a Stella Artois initiative in partnership with water.org to raise awareness and help provide women in need with access to clean drinking water. • Launched at Sundance Film Festival • Videos highlight the difficulties women in water-stressed areas face • Limited edition chalices to raise funds with artwork inspired by traditional
handcrafted objects from India, Honduras and Ethiopia. • Digital/Social media engagement
© Anheuser-Busch InBev. All rights reserved. 34
• Commercial to raise awareness for drunk-driving prevention • The “Friends are Waiting” video opens with the deep bond between two best
friends: Luke and his dog Cooper, and culminates with Cooper’s reaction when Luke doesn’t come home after a night out.
• Video launched on Global Be(er) Responsible Day on September 19, 2014.
© Anheuser-Busch InBev. All rights reserved.
Employee Engagement
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© Anheuser-Busch InBev. All rights reserved.
Global Management Trainee Program
• Graduates from top Universities Worldwide
• 10-month paid training program exposing participants to a wide range of company operations
Global MBA Program • MBA graduates from top Business Schools
worldwide • 12-month program • Immediate impact while realizing your full
potential
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© Anheuser-Busch InBev. All rights reserved.
ABI University • Learning and development website with a curriculum focused on
leadership, method and functional learning. Method track awards white, green and black belts.
Excellence Programs • Functional programs created to drive execution and sustainable results. • Help employees acquire and hone the skills to achieve excellence in
areas such as Brewery Operations, Marketing, Sales, People, Finance, Corporate Affairs, and Information & Business Services
Rewarding Performance • Processes in place to measure and assess performance. • Compensation structure includes bonuses for stretched but achievable
targets. • Help attract and retain people who relish a merit-based environment.
Employee Engagement • The latest opinion survey from December 2014 shows an employee
engagement index of 83% based on responses from more than 103,000 colleagues.
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© Anheuser-Busch InBev. All rights reserved.
Find out more at www.ab-inbev.com
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